AVP: Is Avcorp Knocking On Doors for CSeries (AirBus A200)?Looks like there is an opportunity for Canadian aerospace suppliers like Avcorp to get more business in the supply chain as the US aerospace suppliers become cost uncompetitive.
Is Avcorp knocking on all the doors?
Is Avcorp positioned to benefit from this aerospace supply chain opportunity?
Well???
https://www.theglobeandmail.com/business/article-airbus-ready-to-battle-utc-over-bombardier-c-series-costs/
Airbus ready to battle UTC over Bombardier C Series costs
TIM HEPHER AND ALLISON LAMPERT
PARIS AND MONTREAL
REUTERS
PUBLISHED 1 DAY AGO
UPDATED 1 DAY AGO
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An Airbus A320neo aircraft and a Bombardier C Series aircraft are pictured during a news conference in 2017.
REGIS DUVIGNAU/REUTERS
Airbus is preparing to cross swords with United Technologies over the price of components and services for the Bombardier C Series in a bid to make it easier to market the jet it agreed to bail out last year, people close to the matter said.
Airbus is concerned about an increased share of the Canadian project that would be controlled by United Technologies after it completes its $23-billion acquisition of Rockwell Collins, they said, asking not to be named.
Together, the pair will have by far the largest share of C Series parts and systems by value, placing it at the center of efforts by Airbus to reduce the plane’s cost and echoing a broader power struggle between planemakers and suppliers.
A key part of the acquisition is “muscling the supply chain down on price,” said Richard Aboulafia, vice president of analysis at Virginia-based Teal Group.
“Bombardier couldn’t do that, they just didn’t have the leverage. And Airbus has more than enough leverage.”
Airbus and UTC declined to comment. A Bombardier spokeswoman said UTC was the largest C Series supplier even before completion of the Rockwell Collins merger, but declined to comment further.
Airbus agreed last October to buy the struggling C Series for a token one Canadian dollar, with both sides reckoning its global sales presence and clout with suppliers would make the plane more competitive and easier to sell.
The deal came weeks after United Technologies teamed up with Rockwell Collins with plans to create a new supersupplier.
Among shared components, United Tech supplies engines for the C Series and Rockwell Collins supplies cockpit systems. Aboulafia said premerger UTC supplied about a quarter of C Series content.
Items up for negotiation are likely to include the cost of parts, spares and services like repairs, sources said.